By Mark Beccue
Anytime, anywhere connectivity is becoming a critical requirement for almost any American business, large or small. Every day, businesses are finding new ways to leverage connected devices to meet their goals, but mobility comes at an increasing cost. The company-issued (or Corporate Liable=CL) mobile device is experiencing flat to decline growth rates and BYOD is king. Despite price reductions and declining voice communications, mobile services costs are rising.
According to Compass Intelligence recent research, U.S. enterprise spending on telecommunications services and equipment will increase year-over-year at between 5-6% from 2014 through 2020. Driving that increase is wireline and wireless data costs, particularly wireless data costs. Spending by U.S. businesses on wireless data will increase from $31.8 billion in 2014 to more than $48.5 billion by 2018. Withstanding the worst of the increase are smaller businesses with between 5-99 employees, where mobile data costs are projected to increase 14% year over year in 2017 and 12% in 2018.
U.S. businesses will increasingly look for ways to better manage mobile costs. Some believe steering user devices to low-cost and free Wi-Fi could be a potential solution, but there are QoE (Quality of Experience) issues and Wi-Fi calling remains a challenge. “Wi-Fi First” MVNOs from players such as cable operators might provide relief. Enterprise-focused MVNOs could hold potential, as could Wi-Fi connection platforms or OTT Wi-Fi/Cellular steering apps/services. Compass Intelligence believes initiatives to curb mobile costs for enterprise users will lead to significant disruption for incumbent mobile service providers.
Key questions and areas to consider include some of the following:
Mobile cost reduction solutions will reduce mobile expenses for enterprises in the U.S. by $257 million in 2017. Savings will steadily grow to reach more than $8.5 billion by 2020, which translates to about a 15% reduction of total estimated wireless data costs (enterprise).
Driving user growth will hinge on the following:
To learn more about this highly competitive and evolving market, check out Compass Intelligence’s latest research study, “Controlling Enterprise Mobile Costs: New Business Models Arise Including Unlocked Devices, Wi-Fi First, and Enterprise MVNOs” www.compassintelligence.com
To download the full executive summary, table of contents, and details of this report, click HERE!
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